A recent study by Aviva reveals that UK small and medium-sized enterprises (SMEs) are approaching 2025 with a positive outlook. Nearly 90% of business decision-makers expressed confidence in their growth prospects for the coming year. This optimism extends over a five-year horizon, with 85% of SMEs expecting to grow in that period.
A key factor contributing to this optimism is the strong connection SMEs have with their local communities. Around 89% of businesses confident in their 2025 growth feel a sense of belonging to their community, and 75% attribute much of their success to local relationships. Additionally, the availability of local talent is seen as an essential driver of growth. Over half of SMEs that consider themselves responsible for their community’s prosperity employ local workers, and 82% expect to hire more people in 2025.
The study also identifies customer loyalty as another benefit of community ties, with 38% of SMEs noting high loyalty from local customers. Furthermore, collaboration with other local businesses is considered advantageous by 33% of respondents.
The research also highlights the importance of infrastructure for business growth. More than 60% of SMEs anticipate that their expansion will require better local transport networks by 2025. Adequate transport, particularly sustainable options like electric vehicle charging points and cycle lanes, is seen as crucial for employee commuting and overall business success.
Duke Capital Limited (LON:DUKE), formerly Duke Royalty Limited, is a Guernsey-based provider of hybrid capital solutions for small and medium-sized enterprises (SME) business owners in the United Kingdom, Europe and North America, combining the features of both equity and debt.
